Oil falls by more than 1% after OPEC+ agrees to raise output targets

By Anushree Mukherjee and Helen Clark

July 6 (Reuters) - Oil prices fell by much than 1% connected Monday aft OPEC+ agreed to further summation its output targets from August portion exports from ‌key producers via the Strait of Hormuz are recovering, perchance adding to planetary supplies.

Brent crude futures ‌fell $1.02, oregon 1.41%, to $71.10 a tube astatine 0756 GMT aft settling 0.45% higher connected Friday. U.S. West Texas Intermediate crude was astatine $67.89 ​a barrel, down 80 cents, oregon 1.16%. There was nary colony for WTI connected Friday arsenic U.S. markets were closed up of the Independence Day vacation connected Saturday.

Both contracts were small changed past week aft mostly falling implicit the past fewer weeks, arsenic investors kept a adjacent oculus connected talks betwixt the U.S. and Iran implicit the ‌fate of shipping done the Strait ⁠of Hormuz portion keeping tabs connected the betterment successful Gulf lipid exports.

The Organization of the Petroleum Exporting Countries and their allies including Russia agreed connected Sunday to further summation ⁠output targets by 188,000 barrels per time from August, connected apical of akin increases for June and July.

However, the summation has remained mostly connected insubstantial due to the fact that of the U.S.-Israeli warfare connected Iran, which closed the Strait of Hormuz to ​tanker postulation ​for cardinal OPEC producers, including Saudi Arabia, Kuwait and ​Iraq, capping their output.

"They are selling into a ‌falling market, offering small anticipation of an imminent terms recovery," PVM analysts said successful a note. "However, little lipid prices volition undoubtedly stimulate request further down the line."

Gulf lipid exports successful June jumped much than 3 cardinal barrels from May to transcend 10 cardinal barrels per day, though measurement remained 40% beneath pre-war levels, information showed.

"We present expect planetary lipid request to declaration by 1.5 cardinal barrels per time successful 2026, reflecting a sharper-than-expected ‌downturn successful Q2, erstwhile year-on-year declines could scope 4 cardinal ​bpd based connected preliminary data," ANZ said.

"However, we expect request losses ​to mean successful the 2nd fractional of the ​year arsenic proviso improves and immoderate deferred depletion returns," the slope added.

Abu Dhabi National ‌Oil Company has sold astir 16 cardinal barrels ​of Emirati crude astatine wider ​discounts successful a 5th spot tender issued since June, commercialized sources said, underscoring a surge successful spot supply.

In addition, lipid shipments from Russia's occidental ports deed a grounds precocious successful June and are ​expected to support that level successful ‌July arsenic its refineries person been damaged successful drone attacks by Ukraine that person forced Moscow ​to boost crude exports, manufacture sources said.

(Reporting by Florence Tan and Helen Clark; Anushree Mukherjee ​in Bengaluru; Editing by Sonali Paul and Thomas Derpinghaus)